Rebel Sport owner Super Retail Group (SRG) has announced it will allocate $43 million to repay staff.
The sum equates to six years’ worth of unpaid overtime and allowances to retail managers, with 10% of staff affected by the underpayment.
This is the second time in a year SRG has announced a remuneration oversight, after revealing it had underpaid members of its Set Up team $8 million in August.
In the latest incident, a review revealed $32 million in overtime hours had not been paid in accordance with the General Retail Industry Award over the past six years.
As part of the backpay, SRG will also recognise $11 million in compensatory interest and has apologised to affected staff members.
CEO Peter Birtles has announced he will step down from his role a month earlier than expected as a result of the news.
Birtles' exit will be effective February 20.
“We are very disappointed that we have let these team members down and not met our standards, and we apologise to each person affected unreservedly,” he announced.
“We identified this issue after initiating a thorough review of employment arrangements across our business, supported by external experts."
SRG expects to post a 6% rise in first half sales to $1.4 billion, with earnings before tax, depreciation and amortisation up 11.3% to $166.2 million